U.S. stock markets rebounded on Thursday, snapping a two-day losing streak as investors found renewed confidence in fourth-quarter earnings and relief from easing oil prices. Strong corporate results and upbeat capital spending plans helped offset recent volatility and restored optimism around growth themes, particularly artificial intelligence.
The Dow Jones Industrial Average rose 293 points (+0.6%), while the $S&P 500(.SPX)$ and Nasdaq Composite each gained 0.3%.
Index
Earnings Drive the Market Higher
Corporate earnings were the primary catalyst behind Thursday’s rally. $Goldman Sachs(GS)$ delivered results that lifted the Dow, reinforcing confidence in large-cap financials after a volatile start to earnings season.
Meanwhile, $Taiwan Semiconductor Manufacturing(TSM)$ reignited enthusiasm for the AI and semiconductor trade. The chip giant surprised investors by announcing plans to spend up to $56 billion in capital expenditures this year, far exceeding analyst expectations.
While higher spending might typically concern investors, markets interpreted the move as a sign of strength.
The upbeat outlook helped push several chip-related stocks higher, with KLA emerging as the session’s top performer.
Oil Prices Ease, Supporting Equities
Stocks also benefited from a pullback in oil prices, as crude futures snapped a five-day winning streak and retreated from a seven-month high. Reduced geopolitical tensions with Iran and longer-term timelines for boosting Venezuelan oil production helped cool energy markets.
According to analysts, any meaningful increase in Venezuelan output would likely take years, not months, easing near-term supply concerns. As oil prices fell, the Energy sector underperformed, while more rate-sensitive and defensive sectors found support.
Market Snapshot
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Top gainer: $KLA-Tencor(KLAC)$ (+7.7%)
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Biggest loser: $Robinhood(HOOD)$ (-7.8%)
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Best sector: Utilities (+1.0%)
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Worst sector: Energy (-0.9%)
Housing Market Shows Early Signs of Life
Beyond equities, renewed activity in the U.S. housing market is catching investors’ attention. With mortgage rates at their lowest levels since 2022, buyer interest has picked up, even in the middle of winter, a period typically considered slow for real estate.
Many economists see 6% mortgage rates as a key psychological threshold. As rates move closer to that level, more buyers are stepping off the sidelines in a market still constrained by limited housing supply.
However, sustained demand could reignite home price growth, potentially adding pressure to housing-related inflation, a development the Federal Reserve will be watching closely.
Policy Moves Shake Mortgage Stocks
In housing-related news, shares of Fannie Mae and Freddie Mac fell sharply after President Donald Trump announced plans for the agencies to purchase $200 billion in mortgage-backed securities. The move was interpreted as a sign the administration may continue using the firms as policy tools to help lower mortgage rates.
Both stocks fell to their lowest levels since late November, reflecting investor concern over prolonged government control.
What’s Next for Investors
Earnings season continues with results from M&T Bank, PNC Financial, Regions Financial, and State Street, offering further insight into the health of the banking sector.
Meanwhile, the NAHB Housing Market Index will provide an update on homebuilder sentiment, a key indicator as investors assess the intersection of interest rates, housing demand, and inflation.
Bottom Line: Earnings Momentum Lifts Risk Appetite
Thursday’s rebound reinforces a key market theme for 2026: earnings strength matters more than macro noise. As long as corporate profits remain resilient and investment in growth drivers like AI continues, equities may find support, even amid shifting energy prices and policy uncertainty.
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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
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